Probationary Period Update – CA SB1034

California’s Limit on Waiting Periods (Probationary Periods) – CA SB1034 Signed into Law

As you may know, Governor Brown signed CA SB1034 into law on Friday, August 15, 2014. CA SB1034 repeals California’s stricter 60-day limit on waiting periods (in accordance with AB1083) and allows employers to follow the federal ACA’s 90-day waiting period limitation. CA SB1034 also prohibits insurers and health plans from imposing waiting periods, although the insurer or health plan may administer waiting period on behalf of the employer (as long as the employer’s waiting period does not exceed the ACA’s 90-day limit).


At this time, Health Net is reviewing SB1034 and plans to address how we will implement the law (including the applicable effective date for employers, revision of probationary period options, forms, etc.) Your Health Net contact will provide you with additional details as they become available.

 

 

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Susan Peters